Bitfinex and FUD

22.11.2017

If you operate on the cryptoscene for a shorter period of time, you will not be familiar with either of these names. But to the more experienced, they will, and it is just them (and not only them) who should pay attention to the following lines. Bitfinex is one of the exchanges where it is widely traded. It is recommended to the more experienced because it offers exchange for fiat currencies (dollars and other) and margin trades. This makes the exchange to be a liquidity provider. The exchange which is the dominant part of the market. FUD is the abbreviation for “Fear, uncertainty, doubt". News that cause just fear, uncertainty and then subsequent regret. How much to believe such news is up to you.

And one of such FUDs has spread out about the Bitfinex exhcange. Several people who actively traded on Bitfinex encountered problems with a withdrawal from the exchange. Over time, this problem grew and suddenly there were several hundred people who had the same problem. Already this problem recalls memories of the MtGox exchange, where the situation around this exchange was (and is) very bad.

Many people point to Bitfinex's cooperation with Tether or market manipulation. Trust this information or not? It may well be true that such news themselves are trying to manipulate the market.

The Bitfinex exchange itself stated its opinon on this on its Twitter account. “Bitfinex is solvent and withdrawals in the crypto and fiat run quite normally. We observe an increased number of FUDs, which, we believe, are a coordinated attack on the market and its destabilisation. Before each decision, ask for evidence. We thank those people who defended us against ruthless blames. The official statement is on the way.”

As I have advised at the beginning, it is entirely up to you how you act. You can move on to another exchange and feel more secure or believe Bitfinex and its statements.